Franchising Case Study #2: CNY Storm
In recent years, there’s been a major trend in the all-star cheer industry of large gyms either buying out or lending the use of their name to smaller gyms. In many instances, it appears to be a win-win situation: the larger gym is able to expand to more cities and grow its brand, while the smaller gym receives more credibility and business support. CheerProfessional talked to the owners of three cheer gyms who are giving franchising a try—and reaping the benefits.
Franchise Case Study #2: CNY Storm
Kathy Penree has been in business in Syracuse, New York, for 19 years—this year, Penree was honored as USASF Program Owner of the Year. Six years ago, she took over a gym in Albany, and just recently, she turned it into a franchise location. Another program in Watertown, New York, also recently became a CNY Storm franchise.
You’re new to franchising. How is it going so far? We’re still in the learning curve phase, but I love that we’ve combined our energy, talent and resources. We can give so much more to the staff and to our customer base as a whole. Once we get through this transition phase, I think everyone’s going to be thrilled with what we can all do together.
When do you think gyms should consider franchise opportunities? There are two perspectives. If you’re a smaller gym, don’t be afraid to approach an established program and ask about this opportunity, because I really think it’s becoming the wave of the future. The people who’ve had success and longevity as gym owners are obviously doing the right things, financially. Instruction-wise, they have so much valuable knowledge to share. I see small gyms struggling financially and to retain athletes, and they have to explore all their options in order to be successful. I like when other gym owners say, “I really like what you’re doing. Can we bring that to my athletes?”
On the gym owner side, I think it’s a great opportunity to reach as many kids as I can and have an influence on them. As you become a bigger program, you lose some of the coaching time, and the administrative time takes over. I enjoy doing that part and coordinating everything for the program as a whole, so I have that resource for the gym owner who still wants to be on the floor doing a lot of the coaching. We complement each other.
What other benefits do you offer your franchisees? I’m managing the competition schedule, all of our supplies, ongoing staff education and sharing instructors, so everyone’s bringing their knowledge to the table.
What advice would you give owners who are considering franchising? Number one: have a good solid contract. Be clear and concise about how you want things to run, as far as representing your name and your branding. You want them to conform to your policies, procedures and training.
If a gym owner is looking to become a franchisee, I would tell them to ask all the questions they have any concerns about, and make sure everything is up front. Don’t assume anything.
–Lisa Beebe